If, as a Result of Imperfect Information, Firms Set Their

question 152

Multiple Choice

If, as a result of imperfect information, firms set their wage rates above the market clearing wage rate,

• A) unemployment decreases.
• B) there will be a surplus of workers.
• C) there will be a shortage of workers.
• D) there will be equilibrium in the labor market.

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Definitions:

Balanced-Budget Policies

Financial or fiscal strategies employed by governments to ensure spending does not exceed income.

Government Debt

Government debt is the total amount of money owed by the government to creditors, often as a result of borrowing to cover budget deficits.

Social Security

A government program that provides financial assistance to people with an inadequate or no income, primarily the elderly, disabled, and families with dependent children.

Wealth Transfer

The movement of assets or capital from one individual, group, or entity to another, either voluntarily through gifts and inheritance or involuntarily through taxes or levies.